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The Business of Real Estate

Another option for distressed homeowners


Much has been written and said about how to deal with homeowners in distress — owing more than they can afford for their homes, and often more than their homes are worth in the current market:

— Loan modifications have been an active initiative, but few have succeeded. 

— Short sales remain a viable option in most cases, and major banks and the U.S. government have established a framework of rules and procedures to streamline this historically problematic process. 

— Negotiating a deed in lieu of foreclosure can be a great solution for those that are running out of alternatives.

— Default and foreclosure are the finale.

This op-ed piece from RISMedia offers an attractive option that is worth exploring — equity sharing, true cooperation between lender and borrower:

A Life Preserver for Underwater Homeowners

Ultimately, all of the available alternatives require communication.  Homeowners on the verge of losing their homes are understandably discouraged and humiliated, often angry, and to the point of simply closing off communication.  I completely understand that mortgage servicers can be difficult to approach, and can be nonresponsive — in part because they have heard a lot of these requests and in part because their loss mitigation departments are often woefully understaffed.  Nonetheless, persistence and a productive approach can help to salvage a very bad situation.

If you are in this situation, don’t hesitate to talk to a real estate professional about it, and ask about his or her experience and training in dealing with distressed property owners.  Not only can you get helpful advice, but you may find that communication to your mortgage company by a less emotionally involved professional can get things done that you might not accomplish for yourself.

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About Bill Morris, Realtor

More than thirty years of business experience (high tech, client service, business organization and start-up, including many years in real estate) tell me that service is the key to success and I look forward to serving you. I represent both buyers and sellers throughout the Austin metropolitan area, which means first-hand market knowledge is brought to bear on serving your needs: -- Seller Representation is a comprehensive process that begins with thorough market analysis and consultation, continues with properly staging the home to achieve the highest price possible in a reasonable time on market, a complete program of marketing and promotion, ongoing updates and communication, closing coordination, and follow-up throughout (and after) the sale. -- Buyer Representation is also full service: shopping, previewing, price and market consultation, contracting, negotiating, coordination of inspections, appraisals, repairs, and closing details, and follow-up beyond the closing of your purchase to ensure your lasting satisfaction. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. That's why I constantly research the market and property values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative advertising and marketing techniques to attract potential buyers.

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